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Depends on how much the tax rates raise the price of labor or impair profitability (and limiting future investment on account of a lack of return).
by fennecfoxen 14y ago
Depends on how much the tax rates raise the price of labor or impair profitability (and limiting future investment on account of a lack of return).
- dllthomas 14y agoI'm not saying tax rates have no impact; obviously they can. But taxes levied to addressed collective action problems, where people are actually seeing a return on the taxes paid for things they'd have to fund otherwise, should in fact make labor cheaper. This is also usually dwarfed by things like exchange rates, wages (possibly including minimum wage laws), cost of living, and labor laws - most of which also have interconnections. It's no longer a simple equation in the way that "Hm, my money will be taxed less in that pile than this one" is.